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SINGAPORE: Singaporean conglomerate Keppel Corp said on Thursday (Jan 28) that its struggling offshore and marine (O&M) segment will exit the rig construction business as part of a previously outlined strategic review.
Keppel and its smaller rival, Sembcorp Marine, were among the world’s largest oil rig builders, but low oil prices and an oversupply of rigs have hit the business hard.
The O&M business will focus on areas such as renewable energy and gas solutions, and will have a “significantly reduced workforce” as part of the restructuring, Keppel said.
“When we are successful in executing these plans, we will see a transformed and more competitive Keppel O&M well positioned to support the global energy transition,” said CEO Loh Chin Hua.
Keppel said it was also exploring inorganic options for the O&M business.
The company, whose businesses include real estate development and telecommunications, reported a net loss of S $ 506 million (US $ 380 million) for 2020, compared to a net profit of S $ 707 million a year earlier.
Its latest results included impairments of S $ 952 million mainly due to the maritime and offshore business.
